Transformers are an essential component of all electric grids in the United States with over 40 million distribution transformers in use across the United States. Transformers convert the high voltage running in the distribution lines to lower voltages safer for lines distributing electricity into homes and businesses. New transformers have an initial efficiency above 98%, though this decreases with extended use. Many of the transformers used in the electric grid of the United States were commissioned in the 1960's and 1970's. Because of this, electric power companies are increasingly concerned about the status of the transformers and how long the transformers will continue to perform before a failure or overload occurs.
One way to determine the longevity of a transformer is through frequent periodic site visits by maintenance personnel. This is costly and difficult to implement due to the large number of transformers and their distributed geographic locations. Remote monitoring is possible, but the additional installation of monitoring equipment is cost prohibitive on all but the most critical transformers. As components of the electric grid age, there will be an ever increasing demand on the maintenance teams responsible for the reliability of the system. By targeting specific components, such as transformers that are likely to fail, the maintenance teams may replace the failing component before it drastically loses efficiency or experiences a catastrophic failure. By targeting specific transformers, the efficiency gained by replacing a failing unit, or repairing an unhealthy transformer, even one day sooner, can save emissions produced burning the fossil fuel used to generate the electricity.